Firms Say New SEC Scrutiny May Further Complicate Co-Investments

By

Dawn Lim

Jul 25, 2014 3:05 pm ET

Some private equity managers, facing the prospect of more scrutiny from the Securities and Exchange Commission on how co-investment opportunities are spread between limited partners, caution that additional regulation could pose more challenges to a process that already is difficult to streamline.

Andrew Bowden , director of the SEC’s office of compliance inspections and examinations, said limited partnership agreements the federal agency observed lacked clear “protocols for mitigating certain conflicts of interest, including investment and co-investment allocation” in a speech in New York in May.